I have a property management company and engage in leasing activity. 1101.759. An inspector who meets all other renewal requirements but does not show proof of insurance will receive an inactive license (which does not permit the inspector to perform inspections). A license holder must disclose the fact that he or she represents a party upon the first contact with another party or a license holder representing another party. Yes. Yes and yes. The intermediary is prohibited from acting so as to favor one principal over the other, and may not reveal confidential information obtained from one principal without the written instructions of that principal, unless disclosure is required by TRELA, court order, or the information materially relates to the condition of the property. When the rental locator represents a tenant and not an apartment complex, as demonstrated by a written representation agreement or other evidence of representation, the locator is not required to obtain the consent of the apartment complex because the complex is not his client. Another potential example of a misleading advertisement is a license holder who included a list of Recently Sold Homes in his advertisement that included many properties where he had no role in the transaction, but he failed to make it clear in the ad which if any of those transactions he was involved in. No. The proposed amendments to 535.91 eliminate the lookback period currently found in 535.93, which allows a license holder to renew after the expiration date of their license without any lapse in active licensure, as long as certain certifications are made. The sponsoring broker is still responsible for the sales agent's actions, even when the sales agent does not work out of the brokers main office. As such, the buyer would still be represented by the sales agents previous broker. Does TREC consider promotional items and sponsorships to be advertising? The refund cannot exceed the amount paid by the consumer to the license holder or registrant or certificate holder for a service or accommodation regulated by TREC. [TRELA 1101.002] Further to receive or maintain a license, a business entity must designate an individual holding an active Texas real estate broker license, in good standing,who is an officer, manager, or general partner of the entity to act for it. The proposed change in 22 TAC 535.66(c)(1) is made to reflect current course approval practice by the Texas Higher Education Coordinating Board. Under these proposed changes, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. The changes to the existing rules add the title of the form adopted by reference in each rule to the rule title and add clarifying language to specify which forms are for mandatory versus voluntary use by license holders. Assuming the attorney is licensed in Texas, the seller and buyer may work something out between themselves regarding any compensation to be paid to the Texas attorney. No. If the transaction concerns a residential lease of less than one year and a sale is not being considered, the locator is not required to provide the tenant with a copy of the statutory information about agency (Information about Brokerage Services). Im changing sponsoring brokers. Do the Standards of Practice require inspectors to report copper gas lines as deficient? Is a corroded bathroom fixture that remains operable a defect and required reporting item per TREC? A license is also required for any person who controls the acceptance or deposit of rent from a resident of a single-family residential real property unit. A real estate license is not required for a person who calls an auction of real property, provided the person is licensed as an auctioneer by the Texas Department of Licensing and Regulation. TREC is unable to advise you on how to fill out a private contract form. Can a license holder be disciplined for paying a commission or a fee to or dividing a commission or fee with an unlicensed person for services as a real estate agent? Paragraph 2.B is amended to make the terms house and garage plural. With this repeal and the additional proposed changes in 22 TAC Chapter 535, a license holder who late renews (meaning no later than 6 months after the expiration date) would automatically renew on inactive status. The proposed changes to 22 TAC535.72 are being made to reflect the fact that in 2021, a new eight-hour non-elective coursethe Inspector Legal and Ethics and Standards of Practice Reviewreplaced the two four-hour courses in 2021. Yes. [Rule 535.154(a)(5)]. No. The primary duty of the agent is to represent the interests of the agents client, not the agent's own interests. Unless specifically indicated otherwise, the Standards of Practice only address items that are present at the time of the inspection. If the names do not match, please submit a name change request. A brokers name includes a brokers assumed business name that has been registered with TREC. Yes, but if you offer, recommend, or promote the use of a service provider and expect to receive compensation from the service provider when a party uses the service, the ad must disclose that you may receive the compensation. Is wrinkled loose carpet a defect and required reporting item per TREC? An advertisement cannot in any way imply that a sales agent is the person responsible for the operation of a real estate brokerage. . I am a Texas broker. [Rule 535.32]. A TREC contract form, however, is intended for use primarily by licensed real estate brokers or sales agents who are trained in their correct use. Accordingly, the requirement that inspectors report deficiencies in installed gutter and downspout systems applies only to visible deficiencies in above-ground gutter and downspout systems and not to underground drain piping, cisterns, or other buried components. Is an inspector required to report as deficient an electronic sensor in a garage door that is more than six inches above the garage floor even though the general limitations section states that an inspector is not required to inspect a photoelectric sens. This disclosure may be oral or in writing. These course approval form revisions were recommended by the Education Standards Advisory Committee. Does TREC consider a license holders URL or domain name or email address to be advertising? When I purchased my house there were repairs made before closing that I requested but were not performed properly. A broker is not required to directly supervise sponsored sales agents; this responsibility may be delegated to another person with the required level of experience and expertise to provide proper supervision under the law. SECTION 14. None of the forms promulgated by TREC are intended for use as a contract for deed. A broker or designated broker of a business entity who sponsor one or more sales agents or a delegated supervisor of one or more license holders must complete the six-hour Broker Responsibility Course as part of the 18-hour CE requirement. A licensed broker is prohibited from sharing compensation with anyone who acts in the capacity of a broker but is not licensed as a broker [TRELA 1101.651(a) and 1101.652(b)(11)]. Not unless the person depositing the money has signed an agreement authorizing the broker to keep the interest. This chapter may be cited as The Real Estate License Act. I am having problems with a manufactured home that I purchased recently and wish to file a complaint against the manufacturer and broker/dealer. I discovered that a real estate license holder is also a licensed mortgage broker. Can a broker share a commission or other compensation with an attorney when the attorney is a principal in the transaction? A new instructional parenthetical is added in Paragraph C. Additionally, the interest in modified to reflect a per annum interest rate. When a broker holds money from property management activities in a trust account, how often is a broker required to account for that money? Is olfactory detection of methane/natural gas odorant the only reasonable method of discovering gas leaks when the connectors are not accessible? Can an associated broker use his or her own assumed business name in advertising? Section 535.231(a)(2)(E)(ix) requires inspectors to report deficiencies in the condition of the gas distribution system. In 22 TAC 535.58, proposed changes are made to remove references to residency requirements, which were removed from Chapter 1101, Texas Occupations Code, as a result of the agencys most recent Sunset review andwill limit an existing regulation to correspond with applicable law. In response to the 2nd question, an inspector must keep in mind that his role is primarily to document the condition of the home at the time of the inspection per 535.227(b)(1). (1) personal delivery; You should discuss the terms of the agreement with a private attorney. The proposed changes to 22 TAC535.74 are being made to reflect the fact that in 2021, a new eight-hour non-elective coursethe Inspector Legal and Ethics and Standards of Practice Reviewreplaced the two four-hour courses in 2021. (2) a meeting is with a party currently known to be represented by another license holder; or The proposed removal of the term author in 22 TAC 535.72(h)(1)(B) is being made because the agency is the author of these courses. Can a sales agent have an escrow account? It is the responsibility of the applicant to provide that evidence to TREC. If the broker refuses to release you from your buyer representation agreement, you should seek the advice of a private attorney. Pursuant to Section 535.227(b)(3)(A)(vi) of the Standards of Practice, an inspector is not required to inspect or test metering devices. If a broker maintains a trust account, it must be clearly identified as a trust account. Your sponsoring broker should review your advertising because your sponsoring broker is responsible for ensuring that your advertising complies with TRECs advertising rules, and both you and your sponsoring broker can be disciplined if your advertising violates TREC rules. 23-18, New Home Contract (Incomplete Construction), Standard Contract Form TREC No. Will this prevent me from taking the exam? [TRELA 1101.351(c)], Yes, as long as the broker has the legal authority to use that name in the State of Texas and it is registered with TREC before it is used in advertisements. Please see TREC rule 537.28 for changes that apply to all contract forms. TREC may also adopt rules to establish a policy regarding certain practices. 2. Listing agreements are private contracts between the property owner and the real estate broker, not the sales agent. to The Real Estate License Act in Texas. How can I make the builder do the repair. It could be. The Standards of Practice do not require inspectors to determine if light fixtures are approved for wet locations or to report such installations as a deficiency. I was trying to buy a house and the earnest money was deposited in the broker's escrow or trust account. I went on a tour to inspect unimproved lots. We are unable to provide a general definition. Yes, but with limitations. All sales agent applicants must complete the required education. Do I need to file a complaint with TREC first before I can obtain funds from the Real Estate Recovery Trust Account or the Real Estate Inspection Recovery Fund? Evidence of a past fire is not, in itself, a deficiency. Is the inspector required to perform any inspection of the meter? Do I need a license to lease or rent real property if I am an employee of the property owner? Is a receptacle on a garage ceiling that is not GFCI protected deficient and a required reporting item per TREC? Am I entitled to the earnest money? How do I request inactive status for my sales agent license?
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